Capital Group UK – Global High Income Opportunities (GHIO)

Highly diversified high income

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As at 31 December 2023. Strategy: Based on Capital Group Global High Income Opportunities (LUX) (inception: 7 May 1999), a representative account for the strategy.

  1. Income yield is total income earned by the portfolio, net of withholding taxes and before management fees and expenses, divided by average net assets over the past 12 months. 10-year average annual income yield is to 31 December 2023. Dividend yields distributed by share classes will differ dependent on type and how investors choose to pay management fees and expenses.
  2. Carbon footprint target is based on weighted average carbon intensity. 
  3. The index reflects 50% Bloomberg US High Yield 2% Issuer Cap Index, 20% JPMorgan EMBI Global, 20% JPMorgan GBI-EM Global Diversified and 10% JPMorgan CEMBI Broad Diversified Index.
  4. 3.47% as at 31 December 2023. Source: Morningstar
     


Fund risks

Capital Group UK - Global High Income Opportunities

Bonds risk: The value of bonds can change as a result of interest rate changes – typically when interest rates rise, bond values fall. Funds investing in bonds are exposed to credit risk. A decline in the financial health of an issuer could cause the value of its bonds to fall or become worthless.
Counterparty risk: Other financial institutions provide services to the fund such as safekeeping of assets, or may serve as a counterparty to financial contracts such as derivatives. There is a risk the counterparty will not meet their obligations.
Derivative instruments risk: Derivatives are financial instruments deriving their value from an underlying asset and may be used to hedge existing exposures or to gain economic exposure. A derivative instrument may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the fund.
Emerging markets risk: Investments in emerging markets are generally more sensitive to risk events such as changes in the economic, political, fiscal and legal environment.
High yield bonds risk: Lower rated or unrated debt securities, including high yield bonds, may, as a result, be subject to liquidity, volatility, default and counterparty risk.
Liquidity risk: In stressed market conditions, certain securities held by the fund may not be able to be sold at full value, or at all. This could cause the fund to defer or suspend redemptions of its shares, meaning investors may not have immediate access to their investment.
Operational risk: The risk of potential loss resulting from inadequate or failed internal processes, people and systems or from external events.
Sustainability risk: Environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of an investment of the fund.

Fund risks

Capital Group Global High Income Opportunities (LUX)

Bond Connect risk: Investments in Chinese onshore bonds traded on CIBM via Bond Connect are subject to various risks associated with clearing and settlement, as well as liquidity, regulatory and counterparty risks.
Bonds risk: The value of bonds can change as a result of interest rate changes – typically when interest rates rise, bond values fall. Funds investing in bonds are exposed to credit risk. A decline in the financial health of an issuer could cause the value of its bonds to fall or become worthless.
China IBM risk: The fund may invest on the China Interbank Bond Market. This market can be volatile and subject to liquidity constraints due to low trading volumes. As a result, the price of debt securities traded on this market can fluctuate significantly, spreads may be large, and realisation costs may be significant.
Counterparty risk: Other financial institutions provide services to the fund such as safekeeping of assets, or may serve as a counterparty to financial contracts such as derivatives. There is a risk the counterparty will not meet their obligations.
Derivative instruments risk: Derivatives are financial instruments deriving their value from an underlying asset and may be used to hedge existing exposures or to gain economic exposure. A derivative instrument may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the fund.
Emerging markets risk: Investments in emerging markets are generally more sensitive to risk events such as changes in the economic, political, fiscal and legal environment.
High yield bonds risk: Lower rated or unrated debt securities, including high yield bonds, may, as a result, be subject to liquidity, volatility, default and counterparty risk.
Liquidity risk: In stressed market conditions, certain securities held by the fund may not be able to be sold at full value, or at all. This could cause the fund to defer or suspend redemptions of its shares, meaning investors may not have immediate access to their investment.
Operational risk: The risk of potential loss resulting from inadequate or failed internal processes, people and systems or from external events.
Sustainability risk: Environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of an investment of the fund.

Risk factors you should consider before investing:

  • This material is not intended to provide investment advice or be considered a personal recommendation.
  • The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment.
  • Past results are not a guarantee of future results.
  • If the currency in which you invest strengthens against the currency in which the underlying investments of the fund are made, the value of your investment will decrease. Currency hedging seeks to limit this, but there is no guarantee that hedging will be totally successful.
  • Some portfolios may invest in financial derivative instruments for investment purposes, hedging and/or efficient portfolio management.
  • There are additional risks associated with these funds. See fund risks for more information.
     

This communication is intended for the internal and confidential use of the recipient and not for onward transmission to any other third party.

This communication is issued by Capital International Management Company Sàrl (CIMC), unless otherwise stated, which is regulated by the Luxembourg CSSF - Commission de Surveillance du Secteur Financier. CIMC manages the Luxembourg-based UCITS fund(s), organised as a SICAV, which is a (are) sub-fund(s) of Capital International Fund (CIF).

For the OEIC fund: This material is issued by Capital Group UK Management Company Limited ("CGUKMC"), Registered office 1 Paddington Square, London, W2 1GL, authorised and regulated by the Financial Conduct Authority. CGUKMC manages the fund(s), which is a (are) sub-fund(s) of Capital Group Fund (CGF), established as a UK UCITS Scheme and structured as an umbrella company (under the OEIC Regulations).

You may be entitled to compensation from the Financial Services Compensation Scheme (the ‘Scheme’). Your entitlement to compensation depends on the type of business and the circumstances of the claim.

This communication is of a general nature, and not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities. All information is as at the date indicated and attributed to Capital Group unless otherwise stated. While Capital Group uses reasonable efforts to obtain information from third-party sources that it believes to be accurate, this cannot be guaranteed.

The fund(s) is (are) offered only by Prospectus, together with any locally required offering documentation. In the UK, this is the UCITS Key Investor Information Document (KIID). These documents are available free of charge at capitalgroup.com/europe, and should be read carefully before investing.

Investors acquire shares of the fund, not the underlying assets.

The material is not intended to be distributed or used by persons in jurisdictions that prohibit its distribution. If you act as representative of a client it is your responsibility to ensure that the offering or sale of fund shares complies with relevant local laws and regulations.

The information in relation to the index is provided for context and illustration only. The fund is actively managed. It is not managed in reference to a benchmark.

The list of countries where the Fund is registered for distribution can be obtained online at www.capitalgroup.com

In Europe, facilities to investors (tasks according to Article 92 of the Directive 2019/1160, points b) to f)), are available at www.capitalgroup.com/individual-investors/lu/en/contact-us.html

For European investors, a summary of Fund Shareholder Rights is available at www.capitalgroup.com/eacg/entry-page/shared/summary-of-investor-rights.html

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